Rising Perceived Inflation... Hong Nam-gi Mentions "Downward Price Stabilization" Two Days in a Row

Meeting of Relevant Ministers

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Son Seon-hee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said on the 27th, "Prices are showing a downward stabilization trend due to expanded supply of Lunar New Year seasonal products in January." Despite recent international oil prices rising again and prices of everyday dining items such as coffee, hamburgers, milk, and ice cream soaring sharply, causing difficulties in the livelihood economy, he emphasized 'price decline' for two consecutive days.

Deputy Prime Minister Hong held a meeting with related ministers (Green Room Meeting) at the Government Seoul Office that morning and said, "We will steadily promote expanded supply and discount events so that the prices of Lunar New Year seasonal products can further decline during the remaining period."

At a traditional market visit the previous day, Deputy Prime Minister Hong also mentioned, "After the announcement of the Lunar New Year livelihood stabilization measures, prices of 15 out of 17 items, including 16 major seasonal products and rice, except for apples and chicken, are falling," which led to criticism that there is a large gap between the public's perceived economic conditions and reality.

However, Deputy Prime Minister Hong said, "Upward pressure on prices is increasing this year due to recent rises in international oil prices and raw material costs," and added, "We will strengthen monitoring of international oil prices and raw material prices." In particular, he emphasized, "We will carefully inspect to prevent excessive price increases and opportunistic hikes in the processed food and dining industries, and will strengthen the market surveillance role of the Fair Trade Commission and consumer organizations."

Meanwhile, regarding the recent economic situation, Deputy Prime Minister Hong said, "Last year, we achieved a growth rate of 4.0% for the year, which is the highest growth rate in 11 years," and added, "The Gross National Income (GNI) per capita, to be announced in early March, is expected to increase significantly again after three years, surpassing $35,000."

Nevertheless, he noted, "Uncertainties surrounding our economy are expanding due to the recent spread of the Omicron variant, accelerated monetary policy shifts in major countries, ongoing supply chain disruptions, and concerns about slowing growth in major countries (G2)," and said, "The government plans to make every effort to achieve the 3.1% growth target set in the '2022 Economic Policy Direction.'"

He also added, "We will promptly complete the passage of the supplementary budget bill (14 trillion won) in the National Assembly in February and prepare for rapid support, finish the legislative amendment procedures for consumption and investment tax support, and focus policy capabilities on swiftly implementing follow-up measures related to the enactment of the Special Act on National Advanced Strategic Industries."

This content was produced with the assistance of AI translation services.